A while back, I had a reader send me an email asking me this question:
“I was shopping at CVS and ended up getting my items for free, but yet, I ended up having to pay a small amount. They told me that I still had to pay sales tax. Is this true?”
This is a very good question and the answer is — it depends. First of all, if you read a coupon, the fine print says that the customer must pay any sales tax. That is why it is always important to read the fine print on everything.
Secondly, each state sets it’s own rules as to whether you will pay sales tax pre-coupon total or post-coupon totals. That can actually make a difference on the final amount you have to pay to the store.
It is important to find this information for your state. Since I live in Missouri, I know that our state charges sales tax on the post-coupon value, whereas the neighboring state of Kansas charges based upon pre-coupon totals. The majority of states do charge sales tax on your original purchase price, but definitely do your homework before you.
STATES TAXED ON POST-COUPON TOTALS
Connecticut
Massachusetts
Missouri
Pennsylvania
Texas
Keep in mind that some states do not charge sales tax on certain products (such as food and other items). So sales tax is not applicable on those items and none is required either pre or post coupon savings.
Amy says
June 2, 2014 at 1:10 AMWe seem to have both scenarios in NM. I bought from Walgreens and was charged on the original price. I questioned it a few days later and they said that was correct. Then they rung up my purchase, charging me post coupons tax. I questioned it a couple of days later, they said it always has to be paid on the original price. When I’ve gone to CVS I have never once paid tax on anything but my actual out of pocket cost. Boo Walgreens. Yeaa CVS.